June 19, 2017 |
Nikki Dever

This blog post contains excerpts from the whitepaper Using Artificial Intelligence for Effective Customer Retention, by Retail Pro® and AppCard. Download the whitepaper to learn more about how retailers can leverage artificial intelligence to deliver personalized marketing communications.

In order to leverage data effectively, retailers must be able to derive actionable insights that fuel marketing campaigns or operational decisions.

Enter Artificial Intelligence for Retail Businesses

Innovative AI technology, leveraged for the purpose of customer retention, can empower retailers to learn about, interact with, and bring back their customers with a wide range of loyalty programs, including:

Digital punch cards

Tiered loyalty

Point systems

Gift catalogs

Closed-loop, cross-merchant offers

Open-loop coalition structures

By leveraging artificial intelligence and machine learning, retailers are empowered to use the data gathered through these loyalty programs to deliver highly targeted, and effective marketing campaigns. AI helps retailers to:

Segment their shoppers more strategically

Deeply understand shopper preferences

Identify their best shoppers (shopper ranking)

Predict those that will churn (and drive them back to the store)

Personalize the offers and campaigns that will best meet the shopper’s expectations

Drive the desired behaviors that increase the retailer’s business performance

This unique approach to segmentation simplifies the way regular, churned, one-time, and irregular shoppers are identified and addressed. Additionally, the ability to track the best communication channel with each shopper safeguards the highest possible response rate and interaction quality.

With data at their fingertips, retailers can now effectively use Artificial Intelligence technologies to personalize the shopping experience and increase customer retention.